Boyd Gaming has made a strategic move to enhance its presence in the iGaming sector by acquiring Resorts Digital, the online gambling division of Atlantic City’s Resorts Casino. This acquisition, finalized on September 1, 2024, marks a significant expansion for Boyd Gaming into the lucrative New Jersey online gambling market. The deal includes the acquisition of ResortsCasino.com and MoheganSunCasino.com, along with an unused sports betting skin. This move is expected to propel Boyd Gaming’s iGaming operations to new heights, leveraging the established success of Resorts Digital.
Strategic Acquisition to Strengthen Market Position
Boyd Gaming’s acquisition of Resorts Digital is a calculated step to strengthen its market position in the competitive iGaming industry. Resorts Digital has consistently outperformed its physical counterpart, generating over $573 million in revenue in the first eight months of 2024, compared to $109 million from the physical casino. This acquisition allows Boyd Gaming to tap into the robust online gambling market in New Jersey, one of the leading iGaming states in the US.
The acquisition includes key assets such as ResortsCasino.com and MoheganSunCasino.com, which are expected to enhance Boyd Gaming’s online presence. Additionally, the deal provides Boyd Gaming with an unused sports betting skin, offering further opportunities for growth in the sports betting sector. This strategic move aligns with Boyd Gaming’s long-term vision of building a profitable regional iGaming business integrated with its existing nationwide portfolio.
Boyd Gaming’s CEO, Keith Smith, expressed confidence in the acquisition, stating that it will enable the company to leverage Resorts Digital’s proven success and scale its operations effectively. The integration of Resorts Digital into Boyd Gaming’s portfolio is anticipated to drive significant revenue growth and enhance the company’s competitive edge in the iGaming market.
Operational and Financial Impact
The acquisition of Resorts Digital is expected to have a substantial operational and financial impact on Boyd Gaming. Resorts Digital has demonstrated strong financial performance, with a gross operating profit of $9.6 million in the first half of 2024, up 5.6% from the previous year. In contrast, the physical Resorts Casino reported a gross operating profit of $355,000, highlighting the profitability of the digital segment.
Boyd Gaming plans to integrate Resorts Digital’s operations seamlessly into its existing infrastructure, ensuring a smooth transition for both employees and customers. The acquisition is also expected to enhance Boyd Gaming’s technological capabilities, leveraging Resorts Digital’s advanced online gambling platform to offer a superior gaming experience to its customers.
Financially, the acquisition is anticipated to be accretive to Boyd Gaming’s earnings, contributing positively to the company’s bottom line. The deal is expected to drive revenue growth and improve profitability, positioning Boyd Gaming as a leading player in the iGaming industry. The company’s strategic focus on expanding its digital footprint is expected to yield long-term benefits, enhancing shareholder value and driving sustainable growth.
Future Prospects and Strategic Goals
Looking ahead, Boyd Gaming is poised to capitalize on the growth opportunities presented by the acquisition of Resorts Digital. The company plans to expand its product offerings and explore new markets, leveraging the strong brand recognition and customer base of Resorts Digital. The acquisition is expected to enhance Boyd Gaming’s competitive position in the iGaming market, enabling it to capture a larger share of the growing online gambling industry.
Boyd Gaming’s strategic goals include further expanding its digital footprint and enhancing its technological capabilities. The company aims to offer a comprehensive range of online gambling products, including casino games, sports betting, and poker, to cater to the diverse preferences of its customers. The integration of Resorts Digital’s advanced platform is expected to play a crucial role in achieving these goals, providing a seamless and engaging gaming experience.
The acquisition also aligns with Boyd Gaming’s broader strategy of building a profitable regional iGaming business. The company plans to leverage its existing nationwide portfolio to drive growth and enhance its market presence. The acquisition of Resorts Digital is a significant step in this direction, positioning Boyd Gaming for long-term success in the competitive iGaming industry.
